Rooted in Fundamentals

Price/Intrinsic Value (”P/IV”) Value provides the foundation for five large cap, long-only equity strategies. Our portfolio managers strive to diligently execute our intrinsic value process — All Day. Every Day.

Large Cap Intrinsic Value

The Large Cap Intrinsic Value strategy is a high-quality, large-cap core domestic portfolio of 40-65 stocks, balanced across economic sectors. The portfolio is constructed using a fundamentals-based, bottom-up process to identify stocks with an attractive valuation, positive and improving fundamentals and market acceptance of these factors. The strategy is built upon the firm’s Price/Intrinsic Value (”P/IV”) philosophy, which is the basis for all the firm’s strategies, and utilizes a proprietary Multi-Factor Ranking Model to identify stocks we believe are most likely to outperform.

Portfolio Managers

Curtiss M. Scott, Jr., CFA
President, Chief Investment Officer and Partner

*41 years of industry experience | 23 years with the firm

Read More
John J. White, CFA
Senior Portfolio Manager and Partner

*36 years of industry experience | 17 years with the firm

Read More
John C. Holden, CFA
Senior Portfolio Manager and Partner

*36 years of industry experience | 13 years with the firm

Read More
Shaun C. Siers, CFA
Portfolio Manager and Partner

*12 years of industry experience | 12 years with the firm

Read More

Todd Asset Management believes Price/Intrinsic Value (”P/IV”) is the most effective fundamental calculation to determine the true valuation of a stock. We believe investing in stocks with attractive valuation, improving fundamentals, and market acceptance of those characteristics increases the probability of outperformance. Combining them in a comprehensive, disciplined process with risk controls should result in a portfolio that consistently outperforms the S&P 500 and the Russell 1000 Value over full market cycles.

The Large Cap Intrinsic Value strategy is bottom-up in nature. The screening process starts with a universe of 4,500 domestic stocks which is narrowed to approximately 1,300 that have a market cap >$1 billion and an internal minimum quality rating of B-. We then identify a universe of attractively priced stocks using our Price/Intrinsic Value calculation; generally this universe is the least expensive third.

Following the P/IV screening, we rank the available universe of about 250 stocks according to our proprietary Multi-Factor Ranking Model. A stock must have an attractive P/IV to be considered for our portfolio, but we also examine several additional factors. The process combines:

  • Valuation
  • Fundamental Strength
  • Market Recognition

The Multi-Factor Ranking Model assigns each stock a composite ranking score that reflects in a single number all of the factors we believe are most critical to identifying a stock's true future potential. The composite scores allow stocks to be accurately compared, regardless of sector.

Before finalizing a portfolio, we verify each of the model inputs with a thorough fundamental review of each stock. After considering each factor and validating our model inputs, we assemble a portfolio by selecting what we believe are the most attractive stocks that offer the largest potential upside, highest quality, and maximum diversification for our clients.

The Large Cap Intrinsic Value portfolio holds on average 40-65 domestic stocks balanced across industry sectors. The S&P 500 serves as the foundation for all sector decisions; sector weightings may not exceed the comparable S&P 500 sector weightings by ±10%. All major sectors of the S&P 500 are represented, but we may choose not to participate in sectors with weightings less than 3%. Most of the stocks in the portfolio are assigned a weighting of 1% to 3%. This strategy can be managed according to client investment guidelines, and can be measured against the S&P 500 or the Russell 1000 Value.

An experienced portfolio management team, sharing a common set of core beliefs and having the ability to recognize the underlying drivers for growth and value in individual stocks, is the centerpiece of our strategies. We couple this with buy and sell disciplines based on valuation and fundamentals to limit the risks inherent in stock selection.

Our buy-side risk control measures include:

  • Attractive P/IV
  • High-quality, large-cap portfolio
  • Broadly diversified portfolio of 40-65 stocks avoids single issue risk
  • Economic sector guidelines
  • Maximum issue weightings of 3% at cost and 5% at market
  • Multi-Factor Composite Ranking helps us avoid value traps

Together, these measures are designed to support our underlying discipline of buying companies that are attractively valued, have improving fundamentals and have market acceptance of those factors to generate outperformance.

Our sell discipline is also a vital risk control measure. There are two levels of urgency for selling that can best be described as discretionary and mandatory:

  • A stock is reviewed for potential sale or position reduction when its P/IV is greater than 1.3x the S&P 500, the Multi-Factor Composite Ranking falls below the midpoint of 8 or the fundamentals of a company/industry are perceived to have weakened.
  • A stock is a mandatory sale when its P/IV exceeds 1.5x the S&P 500 or the Multi-Factor Composite Ranking falls below 6. A stock is also sold immediately if a structural negative is identified or if we become concerned about the integrity of a company's accounting.

The time-valued judgement and more than 30 years of average industry experience of our portfolio managers focuses the inputs of our process with guidance as to which market conditions and research carry more or less importance. While holdings in the portfolio are formally reviewed by our portfolio managers each week, informal discussions take place almost daily and changes are made as needed.

International Intrinsic Value

The International Intrinsic Value strategy is a high-quality, large-cap core portfolio of 65-85 internationally domiciled stocks trading on U.S. exchanges that are balanced across multiple sectors and regions. The portfolio is constructed using a fundamentals-based, bottom-up process to identify stocks with an attractive valuation, positive and improving fundamentals and market acceptance of these factors. The strategy is built upon the firm's Price/Intrinsic Value (”P/IV”) philosophy, which is the basis for all of the firm's strategies, and utilizes a proprietary Multi-Factor Ranking Model to identify stocks we believe are most likely to outperform.

Portfolio Managers

Curtiss M. Scott, Jr., CFA
President, Chief Investment Officer and Partner

*41 years of industry experience | 23 years with the firm

Read More
John J. White, CFA
Senior Portfolio Manager and Partner

*36 years of industry experience | 17 years with the firm

Read More
John C. Holden, CFA
Senior Portfolio Manager and Partner

*36 years of industry experience | 13 years with the firm

Read More
Shaun C. Siers, CFA
Portfolio Manager and Partner

*12 years of industry experience | 12 years with the firm

Read More

Todd Asset Management believes Price/Intrinsic Value (”P/IV”) is the most effective fundamental calculation to determine the true valuation of a stock. We believe investing in stocks with attractive valuation, improving fundamentals, and market acceptance of those characteristics increases the probability of outperformance. Combining them in a comprehensive, disciplined process with risk controls should result in a portfolio that consistently outperforms the MSCI ACWI ex-US over full market cycles.

The International Intrinsic Value strategy is bottom-up in nature. The screening process starts with a universe of 3,200 international companies which is narrowed to approximately 800 that are traded on U.S. exchanges, have a market cap >$1 billion and an internal minimum quality rating of B-. We then identify a universe of attractively priced stocks using our Price/Intrinsic Value calculation; generally this universe is the least expensive third.

Following the P/IV screening, we rank the available universe according to our proprietary Multi-Factor Ranking Model. A stock must have an attractive P/IV to be considered for our portfolio, but we also examine several additional factors. The process combines:

  • Valuation
  • Fundamental Strength
  • Market Recognition

The Multi-Factor Ranking Model assigns each stock a composite ranking score that reflects in a single number all of the factors we believe are most critical to identifying a stock's true future potential. The composite scores allow stocks to be accurately compared, regardless of sector or geographical location.

Before finalizing a portfolio, we verify each of the model inputs with a thorough fundamental review of each stock. After considering each factor and validating our model inputs, we assemble a portfolio by selecting what we believe are the most attractive stocks that offer the largest potential upside, highest quality, and maximum diversification for our clients.

The portfolio holds on average 65-85 stocks balanced across multiple countries and industry sectors. The portfolio is limited to ±10% of the ACWI ex-US sector and region weightings, including emerging markets and Canada. Most of the stocks in the portfolio are assigned a weighting of 0.5% to 1.5%. This strategy can be managed according to client investment guidelines, and is measured against the MSCI ACWI ex-US.

An experienced portfolio management team, sharing a common set of core beliefs and having the ability to recognize the underlying drivers for growth and value in individual stocks, is the centerpiece of our strategies. We couple this with buy and sell disciplines based on valuation and fundamentals for all of our strategies to limit the risks inherent in stock selection.

Our buy-side risk control measures include:

  • Attractive P/IV
  • High-quality, large-cap portfolio
  • Broadly diversified portfolio of 65-85 stocks avoids single issue risk
  • Economic sector and region diversification
  • Maximum issue weightings of 2% at cost and 3% at market
  • Multi-factor composite rankings helps us avoid value traps

Together, these measures are designed to support our underlying discipline of buying large-cap, high-quality companies that are attractively valued, have improving fundamentals and have market acceptance of those factors to generate outperformance.

Our sell discipline is also a vital risk control measure. There are two levels of urgency for selling that can best be described as discretionary and mandatory:

  • A stock is reviewed for potential sale or position reduction when its P/IV is greater than 1.3x the MSCI ACWI-ex US, the Multi-Factor Composite Ranking falls below the midpoint of 8 or the fundamentals of a company/industry are perceived to have weakened.
  • A stock is a mandatory sale when its P/IV exceeds 1.5x the MSCI ACWI ex-US or the Multi-Factor Composite Ranking falls below 6. A stock is also sold immediately if a structural negative is identified or if we become concerned about the integrity of a company's accounting.

The time-valued judgement and more than 30 years of average industry experience of our portfolio managers focuses the inputs of our process with guidance as to which market conditions and research carry more or less importance. While holdings in the portfolio are formally reviewed by our portfolio managers each week, informal discussions take place almost daily and changes are made as needed.

Global Intrinsic Value Equity Income

The Global Intrinsic Value Equity Income strategy is a concentrated portfolio of large-cap, higher-dividend domestic and U.S. exchange traded international stocks. The strategy’s primary objective is dividend income, with a secondary focus on growth of income and capital appreciation. The portfolio is constructed using a fundamentals-based, bottom-up process to identify stocks with an attractive valuation, positive and improving fundamentals and market acceptance of these factors. The strategy is built upon the firm’s Price/Intrinsic Value (”P/IV”) philosophy, which is the basis for all of the firm’s strategies, and utilizes a proprietary Multi-Factor Ranking Model to identify stocks we believe are most likely to outperform.

Portfolio Managers

Curtiss M. Scott, Jr., CFA
President, Chief Investment Officer and Partner

*41 years of industry experience | 23 years with the firm

Read More
John J. White, CFA
Senior Portfolio Manager and Partner

*36 years of industry experience | 17 years with the firm

Read More
John C. Holden, CFA
Senior Portfolio Manager and Partner

*36 years of industry experience | 13 years with the firm

Read More
Shaun C. Siers, CFA
Portfolio Manager and Partner

*12 years of industry experience | 12 years with the firm

Read More

We believe investing in higher dividend yielding stocks, with attractive Price/Intrinsic Value (”P/IV”) valuation and strong financial characteristics, should provide a portfolio with excellent current income and potential growth of income over time. In addition, we believe the resulting portfolio should provide investors with upside participation in bull markets and downside protection in bear markets, while at the same time performing well against the MSCI ACWI over full market cycles.

Screening is a bottom-up process that starts with a universe of approximately 7,500 domestic and international stocks. The initial screens identify the stocks that trade on U.S. exchanges with a market cap >$1 billion, minimum internal quality rating of B-, a dividend yield 30% greater than the MSCI ACWI index yield and a positive 5-year dividend growth rate. We also require companies to have both payout and debt/capital ratios ≤ 70%, which fosters stronger dividend growth and reduces the risk of dividend cuts. We then identify a universe of attractively priced stocks using our P/IV calculation; generally this universe is the least expensive third.

Following the P/IV screening, we rank the available universe according to our proprietary Multi-Factor Ranking Model. A stock must have an attractive P/IV to be considered for our portfolio, but we also examine several additional factors. The process combines:

  • Valuation
  • Fundamental Strength
  • Market Recognition

The Multi-Factor Ranking Model assigns each stock a composite ranking score that reflects in a single number all of the factors we believe are most critical to identifying a stock's true future potential. The composite scores allow stocks to be accurately compared, regardless of sector or geography.

Before finalizing a portfolio, we verify each of the model inputs with a thorough fundamental review of each stock. After considering each factor and validating our model inputs, we assemble a portfolio by selecting what we believe are the most attractive stocks that offer the largest potential upside, highest quality, and maximum diversification for our clients.

The strategy’s 30-40 stock portfolio is built from bottom-up, fundamental analysis that includes both domestic and international stocks that trade on US exchanges. We constrain the United States as a percentage of the portfolio to ±10% of the U.S. versus the Rest of World allocation of the ACWI index, but do not impose any other sector or region constraints. It is possible that some sectors may not be represented at a given time. Most of the stocks in the portfolio are assigned a weighting of 1% to 5%. This strategy can be managed according to client investment guidelines, and is measured against the MSCI ACWI.

An experienced portfolio management team, sharing a common set of core beliefs and having the ability to recognize the underlying drivers for growth and value in individual stocks, is the centerpiece of our strategies. We couple this with buy and sell disciplines based on valuation and fundamentals for all of our strategies to limit the risks inherent in stock selection. Our buy-side risk control measures include:

Our buy-side risk control measures include:

  • Attractive P/IV
  • Dividend yield > ACWI
  • High-quality, large-cap portfolio
  • Sector and global diversification
  • Maximum issue weightings of 5% at cost and 7% at market
  • Multi-Factor Composite Ranking helps us avoid value traps

Together, these measures are designed to support our underlying discipline of buying companies with attractive dividend yields, that are attractively valued, have improving fundamentals and have market acceptance of those factors to generate outperformance.

Our sell discipline is also a vital risk control measure. There are two levels of urgency for selling that can best be described as discretionary and mandatory:

  • A stock is reviewed for potential sale or position reduction when dividend coverage deteriorates, its P/IV is greater than 1.3x the MSCI ACWI or the fundamentals of a company/industry are perceived to have weakened.
  • A stock is a mandatory sale when its dividend yield falls below the MSCI ACWI index yield or its P/IV is greater than 1.5x the MSCI ACWI. A stock is also sold immediately if a structural negative is identified or if we become concerned about the integrity of a company's accounting.

The time-valued judgement and more than 30 years of average industry experience of our portfolio managers focuses the inputs of our process with guidance as to which market conditions and research carry more or less importance. While holdings in the portfolio are formally reviewed by our portfolio managers each week, informal discussions take place almost daily and changes are made as needed.

Intrinsic Value Opportunity

The Intrinsic Value Opportunity strategy is unique as a long-only, concentrated, high conviction alpha generator. The portfolio is unconstrained and is comprised of thirty S&P 500 stocks. It is constructed using a fundamentals-based, bottom-up process to combine our Price/Intrinsic Value (”P/IV”) discipline in sleeves consisting of the ten most attractive stocks based on each of three factors: financial strength, profitability strength and market acceptance. The strategy is a disciplined and rules-based application of the firm’s P/IV philosophy, which is the basis for all of the firm’s strategies.

Portfolio Managers

Curtiss M. Scott, Jr., CFA
President, Chief Investment Officer and Partner

*41 years of industry experience | 23 years with the firm

Read More
John J. White, CFA
Senior Portfolio Manager and Partner

*36 years of industry experience | 17 years with the firm

Read More
John C. Holden, CFA
Senior Portfolio Manager and Partner

*36 years of industry experience | 13 years with the firm

Read More
Shaun C. Siers, CFA
Portfolio Manager and Partner

*12 years of industry experience | 12 years with the firm

Read More

Todd Asset Management believes Price/Intrinsic Value (”P/IV”) is the most effective fundamental calculation to determine the true valuation of a stock. Combining P/IV with financial strength, profitability strength and market acceptance factors can trigger recognition of that value. We believe combining them in a rules-based process should increase the probability of outperforming the Russell 1000 Value and the S&P 500 over the short and long term. The process is repeated quarterly to rebalance the portfolio.

This product is designed to take emotion out of the decision making process and invest without constraints in the stocks that show the most upside potential. It also provides a unique method of categorizing all the important variables our portfolio management team believes are critical in making a decision to buy or sell a stock.

Screening is a fundamentals-based, bottom-up process that is formalized in the combination of the firm's P/IV philosophy and factor-based stock selection. The process starts with the stocks included in the S&P 500 Index. We can buy the largest cap or smallest cap stocks in that index. The portfolio is also unconstrained in sector selection. We then identify a universe of attractively priced stocks using our P/IV calculation; generally this universe is the least expensive third.

Following the P/IV screening, we score the remaining stocks on each of three factors: financial strength, profitability strength and market acceptance. Each of the inputs is validated in fundamental review of each stock and the top ten companies from each factor sleeve are combined to build the portfolio. The portfolio purchase decisions are based fully on the results of the factor ranking output. Our portfolio managers adhere to the rules-based discipline except where account restrictions or the firm's sell discipline prompt substitutions/sale. The portfolio is rebalanced to 30 equally weighted positions at the start of each quarter.

The preferred benchmark is the Russell 1000 Value, but the S&P 500 is also acceptable.

An experienced portfolio management team having more than 30 years of average industry experience, sharing a common set of core beliefs and having the ability to recognize the underlying drivers for growth and value in individual stocks, are the centerpiece of our strategies. We couple this with buy and sell disciplines based on valuation and fundamentals for all of our strategies to limit the risks inherent in stock selection.

Our buy-side risk control measures include:

  • Attractive P/IV
  • High-quality portfolio with a bias for large-cap stocks
  • Quarterly rebalancing of the portfolio

Our sell discipline is also a vital risk control measure. There are two levels of urgency for selling that can best be described as discretionary and mandatory:

  • A stock is reviewed for potential sale or position reduction when it underperforms the Russell 1000 Value by 10% or if it rises into the top third of the universe by valuation.
  • A stock is a mandatory sale when it underperforms the Russell 1000 Value by 20%.
  • If a stock rises into the top third of the universe by valuation, it is reviewed by the portfolio management team for potential sale.

International Intrinsic
Value Opportunity

The International Intrinsic Value Opportunity strategy is unique as a long-only, concentrated, high conviction alpha generator. The portfolio is unconstrained and is comprised of 30 international stocks traded on U.S. exchanges. It is constructed using a fundamentals-based, bottom-up process to combine our Price/Intrinsic Value (”P/IV”) discipline in sleeves consisting of the ten most attractive stocks based on each of three factors: financial strength, profitability strength and market acceptance. The strategy is a disciplined and rules-based application of the firm’s Price/Intrinsic Value philosophy, which is the basis for all of the firm’s strategies.

Portfolio Managers

Curtiss M. Scott, Jr., CFA
President, Chief Investment Officer and Partner

*41 years of industry experience | 23 years with the firm

Read More
John J. White, CFA
Senior Portfolio Manager and Partner

*36 years of industry experience | 17 years with the firm

Read More
John C. Holden, CFA
Senior Portfolio Manager and Partner

*36 years of industry experience | 13 years with the firm

Read More
Shaun C. Siers, CFA
Portfolio Manager and Partner

*12 years of industry experience | 12 years with the firm

Read More

Todd Asset Management believes Price/Intrinsic Value (”P/IV”) is the most effective fundamental calculation to determine the true valuation of a stock. Combining P/IV with financial strength, profitability strength and market acceptance factors can trigger recognition of that value. We believe combining them in a rules based process should increase the probability of outperforming the MSCI ACWI ex-US over the short and long term. The process is repeated quarterly to rebalance the portfolio.

This product is designed to take emotion out of the decision making process and invest without constraints in the stocks that show the most upside potential. It also provides a unique method of categorizing all the important variables our portfolio management team believes are critical in making a decision to buy or sell a stock.

Screening is a fundamentals-based, bottom-up process that is formalized in the combination of the firm's P/IV philosophy and factor-based stock selection. The screening process starts with a universe of 800 U.S. exchange traded international companies having a market cap >$1 billion and an internal minimum quality rating of B-. The portfolio is unconstrained in sector and region selection, except that US domiciled stocks are excluded. We then identify a universe of attractively priced stocks using our P/IV calculation; generally this universe is the least expensive third.

Following the P/IV screening, we score the remaining stocks on each of three factors: financial strength, profitability strength and market acceptance. Each of the inputs is validated in fundamental review of each stock and the top ten companies from each factor sleeve are combined to build the portfolio. The portfolio purchase decisions are based fully on the results of the factor ranking output. Our portfolio managers adhere to the rules-based discipline except where account restrictions or the firm's sell discipline prompt substitutions/sale. The portfolio is rebalanced to 30 equally weighted positions at the start of each quarter.

At the start of each quarter the screening process is utilized to rebalanced the portfolio to 30 equally weighted positions. The strategy is unconstrained with regards to sector and region. Our portfolio managers do not consider sector selection in building the portfolio; portfolio decisions are based fully on the results of the factor ranking output. We do not employ any type of derivative strategies.

The preferred benchmark is the MSCI ACWI ex-US.

An experienced portfolio management team having more than 30 years of average industry experience, sharing a common set of core beliefs and having the ability to recognize the underlying drivers for growth and value in individual stocks, are the enterpiece of our strategies. We couple this with buy and sell disciplines based on valuation and fundamentals for all of ourstrategies to limit the risks inherent in stock selection.

Our buy-side risk control measures include:

  • Attractive P/IV
  • High-quality portfolio with a bias for large-cap stocks
  • Quarterly rebalancing of the portfolio

Our sell discipline is also a vital risk control measure. There are two levels of urgency for selling that can best be described as discretionary and mandatory:

  • A stock is reviewed for potential sale or position reduction when it underperforms the MSCI ACWI ex-US by 10% or if it rises into the top third of the universe by valuation.
  • A stock is a mandatory sale when it underperforms the MSCI ACWI ex-US by 20%.
  • If a stock rises into the top third of the universe by valuation, it is reviewed by the portfolio management team for potential sale.